Income per Share

The Company uses the

two

-class method to compute basic and diluted net income or loss per common share. In periods of net loss,

effect is given to the Company’s participating securities as they do

not

contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share data):

	Thirteen weeks ended					Twenty-six weeks ended
	August 4,			July 29,		August 4,			July 29,
	2018			2017		2018			2017
NUMERATOR:
Net income (loss) before allocation of earnings to participating securities	$	(1,800	)	$	44	$	(1,446	)	$	2,673
Less: Earnings allocated to participating securities		-			-		-			33
Net income (loss)	$	(1,800	)	$	44	$	(1,446	)	$	2,640

DENOMINATOR:
Weighted average number of common shares outstanding - basic		14,618,582			15,646,014		14,600,578			15,603,909
Dilutive effect of share-based awards:		-			225,260		-			182,030
Weighted average number of common shares outstanding - dilutive		14,618,582			15,871,274		14,600,578			15,785,939
Basic income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(0.12	)	$	0.00	$	(0.10	)	$	0.17
Diluted income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(0.12	)	$	0.00	$	(0.10	)	$	0.17

In calculating diluted income per share for the

thirteen

and

twenty-six

week periods ended

August 4, 2018,

options to purchase

594,411

and

548,400

shares of common stock, respectively, that were outstanding at the end of the period were

not

included in the computation of diluted income per share due to their anti-dilutive effect. For the

thirteen

and

twenty-six

week periods ended

July

29,

2017,

the number of options to purchase common shares that were excluded from the calculation were

339,772

and

323,598

shares, respectively.